Despite the auto-enrolment of pension schemes being essential, 60 per cent of workers in the hospitality sector in the UK are not saving for retirement due to low pay and minimal employer contributions.
According to latest figures, published by the Trade Unions Congress (TUC) and the Office for National Statistics, one in six hospitality sector workers earn less than the auto-enrolment threshold of £10,000 and are not paying into pension schemes.
Other pension industry blackspots include, agriculture, forestry and fishing (65 per cent), “other” services such as hairdressing and beauty (56 per cent), construction (50 per cent), and arts and entertainment (48 per cent).
Speaking to City AM, Steve Webb, director of policy at Royal London, says: “With a state pension of over £8,000 per year, lower paid or part-time workers will find that the state pension replaces most of their pre-retirement earnings.”
Mr Webb however adds that, whilst auto-enrolment has proved successful to date, an additional pension is needed for those on higher earnings. “We need to make sure that as many people as possible stay opted in to workplace pensions – especially when contribution rates rise next year,” he says.
At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.
Are you on top of auto-enrolment?
Our experts at Beavis Morgan are well versed in all aspects of payroll management including the set up and administration of auto-enrolment. If you would like to know more, please contact Matthew Burge or your usual Beavis Morgan Partner.